THE Marlborough Press. THURSDAY EVENING MARCH. 4. FUTURE BORROWING.

Marlborough Press, Volume XXVI, Issue 1574, 4 March 1886, Page 2

THE Marlborough Press. THURSDAY EVENING MARCH. 4. FUTURE BORROWING.

Should the present Ministry retain power for any length of time, it seems to he pretty well understood that the borrowing of a large sum of money will be one of' the first schemes ' submitted to the House. Sir Julius Vogel considers that the salvation of the Colony depends on the vigorous prosecution of public works, and perhaps with a Ministry that is as wax in his hands, and a good majority in the House, he would be able to carry his borrowing schemes to their full extent. Doubtless New Zealand has progressed more rapidly, through so much borrowed money having been in the past put iu circulation, but the stagnation in trade at the present moment is largely due to the fact that the progress has been too rapid. The Colony has overgrown itself. In our opinion a few years of retrenchment would be quite sufficient to put the Colony “ on its legs” again, but this is certainly not the opinion of Sir Julius Vogel and his colleagues, or rather of Sir Julius Vogel, the power of his colleagues being best represented by a cypher. It is as well to look a question fairly in the "face, and there is yet a possibility—-Although not a probability—that Sir Julius Vogel’s party m : ght be returned to power alter a dissolution, by a fair majority. In that case a highly attractive scheme for ensuring everlasting prosperity to New oaland by borrowing a large sum, would most probably be submitted as early as possible to the new House. If it was accepted a large sum would have to be sent out of .the country annually for interest, and in a few years New Zealand would feel the burden sorely. Why not borrow the money in the Colony ? We arc convinced that there is a great deal of money lying idle, in spite of the depression, and the Gfovernment would have no difficulty in obtaining the required sum, by instalments, of course, to carry on the necessary works. If there was a chance of a large sum of money being required at a good rate of interest, many capitalists would be induced to emigrate to .New Zealand, and the money put in circulation by them, and- employed also in the development of the Colony by priyate enterprise would relieve the depression apd tend considerably

to-the advancement of the Colo ay., The great difficulty is that a higher rate of interest would have to be paid for money borrowed in the Colony than if it had been obtained from England. .But this would he more than counterbalanced by the advantages we haver pointed out, and, after all, tho difference would not be so great as it at first sight seems to be, the eo3t of obtaining money in the English market being considerable, and this would be largely reduced should the money be obtained here. In the above remarks we have of course been supposing the possibility of a majority of the people’s Representatives being in favour of borrowing, but there is little probability of this, and the question for the present can rest.